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Alan Greenspan. Photo: Steven Ferdman/Getty Images

Former Fed Chair Alan Greenspan endorsed the central bank's expected rate cut at this month's FOMC meeting during an interview with Bloomberg TV on Wednesday.

Why it matters: Current Fed Chair Jerome Powell has shown admiration for Greenspan and getting his stamp of approval likely means a rate cut for July is a lock. Powell also could feel emboldened to adopt an even more dovish stance, acquiescing to the market's expectation of 75 basis points of cuts within the next year.

What he said: Greenspan said the idea of a rate cut in the face of possible risks to the economy — in this case the U.S.-China trade war — could be a good idea.

  • "Forecasting is very tricky. Certain forecast outcomes have far more negative effects than others. It pays to act to see if you could fend it off."

Background: Powell paid fawning tribute to Greenspan during his speech at the Fed's Jackson Hole gathering last year, lauding the longtime Fed chief's insight, patience and strategy.

  • Despite criticism laid on Greenspan for his loose views on regulation and policy that many argue were a major cause of the global financial crisis, Powell clearly reveres him, and so do other members of the Fed.

Between the lines: Vice chair Richard Clarida and Chicago Fed president Charles Evans, both FOMC voters, highlighted the Fed's decision to cut U.S. interest rates in September 1998 as prescient, even though unemployment had fallen to 4.5% and there were worries about inflation.

Flashback: At the time, the Fed was worried about the potential of the Russian financial crisis and the collapse of Long-Term Capital Management negatively impacting the U.S., much the way Powell and Co. have focused on negative developments from the trade war and weakness in Europe and Asia as potentially justifying a cut this year.

  • “It is just not credible that the United States can remain an oasis of prosperity unaffected by a world that is experiencing greatly increased stress,” Greenspan said of his reason for cutting rates multiple times in 1998 despite the strong economy.

Yes, but: The Fed ended up backtracking on the cuts and raised rates in 1999 and 2000 ahead of the 2001 recession.

Go deeper: The case for a Fed rate cut

Go deeper

CDC to cut guidance on quarantine period for coronavirus exposure

A health care worker oversees cars as people arrive to get tested for coronavirus at a testing site in Arlington, Virginia, on Tuesday. Photo: Olivier Douliery/AFP via Getty Images

The CDC will soon shorten its guidance for quarantine periods following exposure to COVID-19, AP reported Tuesday and Axios can confirm.

Why it matters: Quarantine helps prevent the spread of the coronavirus, which can occur before a person knows they're sick or if they're infected without feeling any symptoms. The current recommended period to stay home if exposed to the virus is 14 days. The CDC plans to amend this to 10 days or seven with a negative test, an official told Axios.

  • The CDC did not immediately respond to a request for comment.
1 hour ago - Health

CDC panel: COVID vaccines should go to health workers, long-term care residents first

Hospital staff work in the COVID-19 intensive care unit in Houston. Photo: Go Nakamura via Getty

Health-care workers and nursing home residents should be at the front of the line to get coronavirus vaccines in the United States once they’re cleared and available for public use, an independent CDC panel recommended in a 13-1 emergency vote on Tuesday, per CNBC.

Why it matters: Recent developments in COVID-19 vaccines have accelerated the timeline for distribution as vaccines developed by Pfizer and Moderna undergo the federal approval process. States are preparing to begin distributing as soon as two weeks from now.

Obama: Broad slogans like "defund the police" lose people

Snapchat.

Former President Barack Obama told Peter Hamby on the Snapchat original political show "Good Luck America" that "snappy" slogans such as "defund the police" can alienate people, making the statements less effective than intended.

What he's saying: "You lost a big audience the minute you say it, which makes it a lot less likely that you're actually going to get the changes you want done," Obama told Hamby in an interview that will air Wednesday morning at 6 a.m. EST on Snapchat.